The cryptocurrency market faced a tumultuous week as institutional investors yanked a staggering $600 million out of digital asset funds. This abrupt exodus, revealed by CoinShares data, marks the largest outflow since March 22, 2024, echoing a similar trend following a monumental $2 billion inflow just the previous week.
The brunt of the retreat was borne by Bitcoin, with a jaw-dropping $621 million exiting its funds. The repercussions were palpable, particularly in the US, where Spot Bitcoin ETFs suffered daily hemorrhaging save for a fleeting $100.8 million influx on June 12. By week's end, these ETFs had bled a substantial $580 million, underlining a profound shift in investor sentiment towards the flagship cryptocurrency. #BTC #SolanaUSTD
Solana, another casualty of the week's volatility, bled $0.2 million, further contributing to the sector's woes. Meanwhile, Ethereum grappled with $13.1 million in outflows, contrasting sharply against burgeoning anticipation for forthcoming Spot Ethereum ETFs.
Against a backdrop of dwindling trading volumes—plummeting to $11 billion from a yearly average of $22 billion—the sector's total assets under management dwindled from a lofty $100 billion to a diminished $94 billion in just seven days. As the Federal Open Market Committee (FOMC) struck a hawkish tone with unchanged interest rates at 5.25%-5.50%, investors hastily sought refuge in safer havens, casting a pall over the once-booming crypto landscape.
Amidst these seismic shifts, pockets of resilience emerged, with BNB, Litecoin, XRP, Chainlink, and Cardano bucking the trend with modest inflows ranging from $0.3 million to $1.1 million.
The week's events underscore a stark reminder of crypto's volatility and its susceptibility to macroeconomic factors, leaving investors and enthusiasts alike on edge as they navigate turbulent waters ahead.
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